Is our Retail Space over priced?

et1957

Is it true that there are not enough retail space in Singapore?

To me it all depends on which area you are looking at. Look at Chinatown Point, Riverside Point, Cuppage Plaza or even Orchard Plaza? there are so many shop space available.

So do you think after it was announced that retail space is lacking it has made the property owners to take this opportunity to charge higher? I SAY YES,,,,,, what about you?

Ed

pyxis goko

Hi Ed,

1. (To me it all depends on which area you are looking at. Look at Chinatown Point, Riverside Point, Cuppage Plaza or even Orchard Plaza? there are so many shop space available.

2. So do you think after it was announced that retail space is lacking it has made the property owners to take this opportunity to charge higher? I SAY YES,,,,,, what about you?)


I agree that Retail space are getting more expensive, especially over the past 2 years and ever since the property market are getting like hot-cake. I do believed it goes like a cycle. When property market are up, it shows the trend of more employment, more investors are coming to Singapore to invest. As when these happen, it will ultimately increase the usage of space. When demands are high, supplies are low, price will automatically goes up. And when recession hits everyone, things start to go down as everyone don't want to spend.

As for point '1', it depends on crowds. I believe you'll not want to get a shop when the crowds are so little and also it depends on what you sell. Human psychologies are like that, they want easy excess within the same location. So, automatically, retailers will look for heavy traffic areas. Lots of people are in waiting list to book for a good location. So, again, when demands are high, supplies are low, price will goes up.

For point '2', I believe it goes with the trend. 'Cycle, isn't it???'

pyxis

et1957

Yes I agree with you that due to scarcity prices go up. but is that even place like Chinatown Point, Orchard Place, Cuppage Plaza the property owns are still expecting higher rental rates.....

pyxis goko

I guess everyone are following the market price. What to do
Anyway, I feel the impact is not only the retailers but the end users (spenders). The retailers are imposing the cost to the end users

Mighty

i agree.. now a days all the rental are really ex. but the most reasonable place are china square central.. haha..

shirley

I heard that rental at Bugis Street is around $2.2k for a 36sqf area, do you that this is over priced or reasonable? How much is China square central?

et1957

For S$2,200 for 36sq ft that works out o be about S$61.11 per sq ft that is expensive.

But if you can sell items that would sell then I guess its alright

clefchen

The main issue is not just the $$ but the location/traffic.
Coz it might affect the sales greatly.
As what i know, there are a lot of dead corners in bugis street.
China square central is mainly for office crowd, traffic after office hour and holiday is quite bad.
Although lunch break got people, but hardly buy coz need to rush back to work.

et1957

Well at the end of day we all have to do our homework and our clientele market and decide where to open your shop.

On the bright side of opening in a mall that caters to the working market, you can close your shop on weekends....

pelican

it's all about demand and supply.
as long as there are people wanting to rent even when rent is high... it will continue to increase.